Big purple Overbury's Pioneer

Nobody worried about the hole on the dropout weld then?
Personally I wouldn't be too worried about it.
Looks like the brass didn't penetrate far enough into the tube before the chain chamfer was filed, leaving a very thin skin of brass that was punctured when the frame was blasted prior to paint.

Nothing structural. FrameSaver to stop any rust and a small plug of filler or wax to stop any more water getting in if you're really worried.

All the best,
 
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